The chief of the International Monetary Fund believes Japan will be able to revitalize its economy enough to accommodate the next consumption tax hike and that the country should continue efforts to empower women.

Christine Lagarde forecast that Japan's economy is likely to return to expansion at a pace faster than 3 percent in the July-September period but hinted at a reduction to the global growth estimate for this year amid growing uncertainties.

"Our forecast of at least 3 percent for Q3 should give the authorities sufficient comfort to increase" the consumption tax rate to 10 percent in October next year as scheduled, Lagarde said last week in an interview at the IMF headquarters in Washington.